Mineral Resources vs BHP: ASX miners diverge on profit, yield

Mineral Resources Ltd and BHP Group Ltd sit at opposite ends of the mining risk spectrum. Their latest financials show just how wide the gap has become.

Mineral Resources, the diversified Western Australian miner and mining services provider, reported revenue of $5,278 million in FY24, up 12.2% a year since 2021. Net profit over that same stretch collapsed from $1,270 million to $125 million. Return on equity came in at 3.2%.

The company's in-house engineering arm, CSI Mining Services, operates across Western Australia, Queensland, and the Northern Territory. It handles capital infrastructure and operational work for external clients. That vertical integration gives Mineral Resources control over project timelines. The lithium downturn has hit earnings harder than revenue growth would suggest.

BHP Group, the 1885-founded diversified resources giant, reported an ROE of 19.7% in FY24, well above the 10% threshold that income-focused investors typically target for mature businesses. Its debt-to-equity ratio sat at 45.3%. Equity still outweighs debt on the balance sheet.

Since 2020, BHP has paid an average dividend yield of 6.9% a year. That figure has anchored the stock in Australian superannuation and ETF portfolios. The company generates the bulk of its revenue from copper, iron ore, and metallurgical coal, with a growing push into fertiliser.

For a growth stock like Mineral Resources, the metric to watch is whether revenue growth can translate back into profit expansion. For BHP, the dividend track record and balance sheet strength remain the draw. Both stocks offer exposure to Australian resources. The question is which phase of the commodity cycle each is built for.

The BHP stock page and commodities analysis sections on AlphaScala provide further detail on both companies' positioning.